#United States #Phoenix #Grand Canyon University #FTC #Brian Mueller

FTC Dismisses Lawsuit Against Grand Canyon University

In a significant ruling, the Federal Trade Commission (FTC) has unanimously decided to dismiss a contentious lawsuit against Grand Canyon University (GCU) and its largest service provider, Grand Canyon Education. This decision effectively closes the chapter on what has been described as years of politically driven legal challenges aimed at one of the largest Christian universities in the United States.

Background of the Lawsuit

The legal battle began under the previous administration, with accusations that GCU failed to adhere to regulations concerning its non-profit status and financial disclosures. However, the lawsuit was dismissed by the United States District Court in Arizona, citing jurisdictional issues. Following that, all involved parties submitted a joint Stipulation of Dismissal with Prejudice, leading to the FTC's recent ruling.

FTC Chairman Andrew N. Ferguson noted in the ruling that the case, inherited from the past administration, faced significant hurdles after suffering losses in two separate motions to dismiss. He highlighted GCU's recent legal victories, including a favorable ruling from the Ninth Circuit Court against the Department of Education, where a massive fine had previously been imposed.

Victory for GCU

GCU President Brian Mueller expressed gratitude for the current FTC administration’s thorough evaluation, citing the numerous positive judgments and rulings that reaffirmed GCU’s compliance with regulations. He stated, “As we have stated from the beginning, not only were these accusations false, but the opposite is true... We are recognized as a leader in this area.”

The dismissal of the lawsuit is viewed as a victory not just for GCU, but also for the institution's faculty, staff, students, and their families who have been steadfast in their belief in the university’s mission. Mueller declared, “Despite every unjust accusation leveled against us, we have not only survived but have continued to thrive as a university.”

Political Motives Behind the Allegations

Critics of the lawsuit have pointed to what appears to be a coordinated effort by former Biden Administration officials aimed at undermining GCU's reputation. Shortly after GCU filed a lawsuit regarding its nonprofit classification, former FTC Commissioner Rohit Chopra announced a plan to intensify scrutiny on for-profit institutions, which, some argue, placed GCU in the crosshairs.

Documents show that multiple agencies staged extensive investigations into GCU’s practices, which they alleged were misleading. However, subsequent investigations by independent entities and courts have repeatedly found these claims to be unsubstantiated. Notably, GCU was singled out for expansive and aggressive inquiries that have not been systematically applied to other institutions.

Addressing the Allegations

The allegations against GCU primarily centered around its financial disclosures related to its doctoral programs and the reclassification of its nonprofit status. Claims made by former Education Department officials regarding “substantial misrepresentation” were countered by findings from independent accredited bodies that deemed GCU's disclosures as more than adequate.

The institution’s approach to transparency has been validated by rigorous examinations from various oversight bodies, reinforcing that GCU maintains excellent compliance standards. Notably, the Higher Learning Commission, which oversees accreditation, described GCU's disclosures as “robust and thorough.”

The Path Forward for GCU

With the FTC lawsuit now dismissed, GCU is refocusing on its mission and goals. Mueller remarked, “We support common sense government oversight but vehemently reject ideologically driven actions that are not equally applied.” He emphasized GCU's commitment to its Christian values and dedication to providing quality education in a supportive environment.

The university remains hopeful about a forthcoming decision from the Department of Education concerning its nonprofit status, especially after ten members of the Arizona Congressional delegation submitted a bipartisan letter in support of GCU’s position. GCU continues to strive for excellence in education while remaining committed to its foundational values, putting students and their families at the forefront of its endeavors.

Conclusion

This ruling underscores a critical turning point for GCU, as it seeks to clarify its standing and reinforce its commitment to providing enriched educational opportunities. As the university looks ahead, its administration is determined to prioritize student success while advocating for fairness and transparency in regulatory practices. For more information about Grand Canyon University, visit gcu.edu.